Evaluation of Impacts of Access to Credit and Loan Size for Microcredit Clients in South Africa

Innovations for Poverty Action

Status: Completed

Conditions: Depression; Stress; Mental Health

Treatments: Other: Small loan

Study type: Interventional

Funder types: Other; Other U.S. Federal agency

Identifiers

NCT00700349

IPA-2004-SA

Details and patient eligibility

About

This study involves randomization of individuals who were initially rejected from a micro-lending organization in South Africa. Subjects were placed into two arms: (1) not receiving a loan; (2) being reconsidered for a "second look." Of those in the second arm, 53% were then selected by the organization's loan officers to receive a standard loan for first-time borrowers. Mental health and financial data were collected at one timepoint: approximately 6-12 months after the subjects first applied for the loan.

Enrollment: 3,000 patients

Sex: All

Ages: 18+ years old

Volunteers: No Healthy Volunteers

Inclusion criteria

• Subjects were recruited from those who had been rejected from a lending organization for non-fraudulent or non-overindebtness reasons.

Exclusion criteria

• None.

Trial design

3,000 participants in 2 patient groups

1

No Intervention group

Description:

Individuals who were rejected from receiving a loan from a micro-lending organization were randomized to continue receiving no loan.

2

Experimental group

Description:

Individuals who were rejected from receiving a loan from a micro-lending organization were randomized to receive a "second look," to be reconsidered for a loan by loan officers.

Treatment:

Other: Small loan